You're across it Eugene. Maybe a loan instead? Um, what sort of security could you pledge? Maybe a Charge over all the assets and undertakings of the company in exchange for an interest rate of ?% Like the last one of $90 mil which carried a penalty of more than double the amount borrowed. Which gave rise to a capital raise of $267 mil to repay that $90 mil, which in turn has resulted in an inability to raise capital without seeking shareholder approval.
On Saturday FreeFromStyle was asking other posters in Hot Copper to have my comment about ZIP being unable to borrow or raise capital moderated on the basis that it was 'misinformation'. I'll just leave that there, but firstly ask:
Is ZIP unwilling to get that shareholder approval, or is it unwilling to make changes to its capital structure in advance of a takeover? If the first, there is going to be a huge one after July 1. If the latter, there is a grave risk that they have missed the boat before the US market unwinds. Risk in both, actually.
ZIP Price at posting:
$3.04 Sentiment: Sell Disclosure: Not Held
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